Getting Protection While Building Wealth

Do you know anyone that enjoys risk taking? Of course you do.

This is what they like: The excitement of the win and the tension of not knowing where your next profit making opportunity will come. The thrill of exorbitant returns. And of course telling all of their friends how well they did on the investment. And how many of those folks do you know that are really killing it and making solid profitable returns in their investment plays?

Many of us know investors who say they are getting 6 or 10% or more on their investments, or think they are with their stock broker. I often ask my prospective clients how much money have you gained from your original investment? Most will say their average return number but they haven't had the real analysis of actual dollars returned for their investment analyzed. That is usually because their broker likes to keep them in the dark about their returns.

What most novice investors don't realize is that even though an average return of 8% may seem like they are doing well with their investment, if their are dips in the returns that fall below 8 % what was the gain that led to the recovery? All of this because the math is not the real number the dollars returned are the real returns.

An Example of a 25% return that is really 0%.

An example of a seemingly 25% average return might really be a 0% return . Say you invest $1000 today and a year from now you have $2000. Well that is a 100% return on your investment. Say that the next year you lose $1000 on that account. That translates to a -50% loss and you end up with $1000 again. Say the next year you get a 100% gain again to $1000 than the next year lose -50%. That is an average of 25% returns however you end up with what you started with. In my book that is a 0% return.

As a financial coach I teach my clients to how to not only get consistent positive returns but at the same time using their money for multiple uses. This is one of the basic rules of macro-economic thinking that most advisors know nothing about.

There are ways to get consistent returns that are safe an guaranteed while getting multiple benefits from those dollars. If you have an interest in learning how you can tap in to this resource please call me at 610-695-8748. Learn more at my website by visiting yourwealthadvocate.com